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Remanufacturing

Author

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  • Sophie Bernard

    (Department of Economics, University of Ottawa, Ottawa, ON)

Abstract

Remanufacturing is a form of recycling where used durable goods are refurbished to a condition comparable to new products. With reduced energy and resource consumption, remanufactured goods are produced at a fraction of the original cost and with lower emissions of pollution. This paper presents a theoretical model of remanufacturing where a duopoly of original manufacturers produce a component of a final good. The component needing to be replaced creates an aftermarket. An environmental regulation assessing a minimum level of remanufacturability is also introduced. The main results indicate that a social planner could use collusion of the firms on the level of remanufacturability as a substitute for environmental regulation. However, if an environmental regulation is to be implemented, collusion should be repressed since competition supports the public intervention better. One of the results also coincides with the Porter Hypothesis.

Suggested Citation

  • Sophie Bernard, 2010. "Remanufacturing," Working Papers 1003E, University of Ottawa, Department of Economics.
    • Handle: RePEc:ott:wpaper:1003e
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    File URL: http://sciencessociales.uottawa.ca/economics/sites/socialsciences.uottawa.ca.economics/files/1003E.pdf
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    References listed on IDEAS

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    Cited by:

    1. Abdullah Alfaify & Mustafa Saleh & Fawaz M. Abdullah & Abdulrahman M. Al-Ahmari, 2020. "Design for Additive Manufacturing: A Systematic Review," Sustainability, MDPI, vol. 12(19), pages 1-22, September.
    2. Zhu, Qinghua & Sarkis, Joseph & Lai, Kee-hung, 2015. "Reprint of “Supply chain-based barriers for truck-engine remanufacturing in China”," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 74(C), pages 94-108.
    3. Bernard, Sophie & Hotte, Louis & Winer, Stanley L., 2014. "Democracy, inequality and the environment when citizens can mitigate health consequences of pollution privately or act collectively," European Journal of Political Economy, Elsevier, vol. 34(C), pages 142-156.

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    More about this item

    Keywords

    remanufacturing; competition; environmental regulation; Porter Hypothesis;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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